jj !Required informationExercise 9-21 (Algo) Calculate the issue price of bonds (LO9-7)[The following information applies to the questions displayed below.]On January 1, 2024, Adventure World issues $39.9 million of 7% bonds, due in 10 years, with interestpayable semiannually on June 30 and December 31 each year. The proceeds will be used to build a newride that combines a roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque,all in one ride.Exercise 9-21 (Algo) Part 1Required:1-a. If the market rate is 6%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1)1-b. Will the bonds issue at face amount, a discount, or a premium?Complete this question by entering your answers in the tabs below.Req laReq 1bIf the market rate is 6%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriatefactor(s) from the tables provided. Enter your answers in dollars not in millions (i.e., $5.5 million should be entered as5,500,000). Round your final answers to the nearest whole dollar.)Bond CharacteristicsFace amountInterest paymentNumber of periodsMarket interest rateIssue price$$Amount39,900,0001,396,500203.0%< Req 1aReq 1b >

Issue price of bonds is the present value of the interest annuity & maturity amount at market…

Answered: On January 1, 2024, Adventure World…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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